During the financial year under review, Parliament approved a national budget totaling 45.4 trillion and this was later revised to 51.6 trillion Shillings through supplementary budget allocations.
Now, according to the audit report, 36 projects failed to absord funds availed to them for implementation of activities and as a result, a total of 431 billion Shillings and US Dollars 30.2 million (105.5 billion Shillings) remains on project accounts.
A new audit
report released by the Auditor General has revealed 536.5 billion Shillings for
36 government projects have not been absorbed.
highlighted in the audit report for the financial year 2020/2021 presented to the Deputy
Speaker of Parliament, Anita Among on Wednesday by Auditor General John
During the financial year under review, Parliament approved a national budget
of 45.4 Trillion Shillings and later revised it to 51.6 trillion Shillings through
supplementary budget allocations.
According to the audit report, 36 projects failed to absorb funds availed to
them for implementation of activities and as a result, a total of 431 billion
Shillings and US Dollars 30.2 million (105.5 billion Shillings) remains on
Muwanga notes this as one of the major reasons that affect service delivery
within the government. This follows his review of reasons why the government
continues to face challenges in the delivery of services to citizens despite
the allocation of funds to Ministries, Departments, and Agencies – MDAs every year.
Edward Akol, the Acting Assistant Auditor General in charge of Audits, said
that the failure to absorb project funds was mainly attributed to the fact that
disbursement of any project funds depends on the utilization and full
accountability of prior disbursements which was still a challenge for most
He further notes that the absorption level was affected by the Covid-19 pandemic,
also noting that failure to absorb project funds affects subsequent disbursements
which, implementation of project activities thereby affecting service delivery.
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Also highlighted by the Audit Report is the delayed procurement processes in
different government entities as another reason that affects service delivery.
“I noted that a sample of 56 procurements worth 2.3 trillion Shillings had
delays in completing the procurement processes. In some cases, the time taken
between procurement initiations and contract signing was more than 5 months,”
reads part of the audit report.
The report attributes the delays in procurements to numerous administrative
reviews, inefficiencies within the Procurement and Disposal Units –PDUs, and
Covid-19 which resulted in entities operating at 30 percent.
Akol says that delayed procurements result in delayed commencement of works and
loss of implementation time hence affecting service delivery.
He also notes delayed progress of works and constructions and abandoned works
as other issues affecting service delivery.
Under delayed constructions, Akol noted slow progress of works in a sample of
58 works project worth 694 billion Shillings while 13 cases of works worth 21.3
billion had been abandoned by contractors.
“A comparison of the expected dates of completion of works and progress at the
time of audit revealed that works were behind schedule sometimes by more than 5
months,” said Akol.
He further attributed abandoned works to weaknesses in contract supervision,
cash flow problems of contractors, and the limited capacity of contractors.
Akol says that abandoned works imply that the services that were anticipated
from the completed works will not be achieved and more time would be required
if the works are to be retendered which results in further delays.
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The audit report also reveals delayed delivery of supplies and the auditors
highlight 12 cases worth 70.7 billion where deliveries were delayed.
“This was attributed to the impact of Covid-19 that caused disruptions in the
international movement of goods, limited capacity of contractors, weaknesses in
contract supervision, and restrictions in movement put in place to curb the
spread of Covid-19. This results in delayed service delivery to the
beneficiaries,” said Akol.
Akol says that failure to deliver expected services to beneficiaries negates
the purpose of allocation of resources to entities and diminishes confidence in
government processes regarding allocation and utilization of resources.
The Auditor-General advised the government to ensure that entities undertake
procurements in a timely manner, and to strengthen contract supervision in
order to mitigate against the effects of poor contract management. Muwanga also
recommends that government develops a strategy and contingency plans for
mitigating the effects of Covid-19 on service delivery.
that the presentation of the audit report will enable the Accountability
Committees of the 11th Parliament to have business.